ITEM 7.
ESTIMATED INITIAL INVESTMENT
In the table below, we
estimate the initial investment for a new Master Business. Unless otherwise
noted, all payments to us are non-refundable. The refundability of payments to
others will depend upon your arrangement with them.
02/08 us20o0 10540331.3
1.
See Item 5.
2.
The
estimate represents the cost of an Opening Package, which includes one Mobile
Unit (a Toyota Yaris) and equipment necessary to operate an Ecowash Business
(collectively, "Equipment"), an initial supply of cleaning and
polishing products for use in the Ecowash Business ("Products"), and
an initial supply of marketing and recruiting materials ("Marketing
Materials"). The specific items and quantities of items that we currently
include in the Opening Pa ckage are listed in Appendix C to the Master License
Agreement that is attached as
Exhibit A to this Disclosure Document, but the items are subject to change
periodically, in our sole discretion, as specified in the Manuals.
3.
This
estimate is for the cost of purchasing a basic personal computer and printer.
We do not specify the type or brand of computer must purchase, but your
computer must be able to access the Internet. The low estimate assumes that you
already own adequate computer equipment.
4.
This
estimate is for the cost of attending initial training at a location that we
designate, which may be outside of your Territory. We provide instructors,
facilities, and materials for the initial training program at no charge. You
are responsible for the travel expenses, living expenses, wages, and other
expenses incurred by your trainees during initial training. The actual cost
will depend on your point of origin, method of travel, class of accommodations,
and dining choices.
5.
This
estimate is for the cost of a deposit and your first year of annual premiums
for the minimum required insurance. You will need to check with your insurance
carrier for actual premium quotes and costs, as well as the actual amount of
the deposit. The cost of coverage will vary based upon the area in which your
business will be located, your experience with the insurance carrier, the loss
experience of the carrier, the amount of deductibles and of coverage, whether
you have Fixed Units or Mobile Units, and other factors beyond our control. You
should also check with your insurance agent or broker regarding any additional
insurance that you may wish to carry above our required minimums.
6. ''���� This estimate is for the cost of engaging an
attorney, accountant, or other business
advisors to assist you in
reviewing this Disclosure Document, the Master License Agreement, your business
plan, and any other contracts related to your Master Business. We strongly
recommend that you seek the assistance of professional advisors when evaluating
this master license opportunity. The estimates represented in this chart are
based on professional fees in the State of Georgia. You may experience
different rates for professional fees in your market. It is best to ask your
professional advisors for their fee schedule prior to engaging them to perform
any services on your behalf.
7.
This
estimate includes the cost of licenses and permits and, if you operate a Fixed
Unit, utility deposits necessary to open your Master Business. You are
responsible for maintaining all required licenses and permits necessary to
operate your Master Business. You should check with local authorities, an
attorney, or a business consultant to determine what licenses and permits are
necessary at your location.
8.
This
is an estimate of the amount of additional operating capital that you may need
during the first three months after opening your Master Business. This estimate
includes additional funds you may need to pay, including, but not limited to,
employee salaries and wages, payroll taxes, utilities, fuel costs, credit card
facility fees, such items as payroll taxes (including pay roll to cover the
pre-opening traini ng period for your staff), legal and accounting fees,
additional advertising, health and workers'' compensation insurance, bank
charges, miscellaneous supplies and equipment, staff recruiting expenses, state
tax and license fees, deposits, prepaid expenses, and other miscellaneous
items. The preceding list is by no means conclusive of the extent of possible
categories of expenses. The expenses you incur during the start-up period will
depend on factors such as local economic and market conditions, your business
experience, weather conditions, and the level of traffic at your Fixed Unit. We
cannot
guarantee that you will not
incur additional expenses in starting the business that may exceed this
estimate or that you will not need additional funds after your first three
months of operation. It is best to contact your accountant or financial advisor
for further guidance.
9. This total amount is based
upon EMI''s experience with its master licensee in Nevada and our affiliates''
experience opening and operating Ecowash Businesses internationally. Your costs
may vary based on a number of factors including, but not limited to, the
geographic area in which you open, local market conditions, and your skills at
operating a business. We strongly recommend that you use these categories and
estimates as a guide to develop your own business plan and budget and
investigate specific costs in your area. You should independently investigate
the costs of opening a business in the geographic area in which you intend to
open your Master Business. You should also review the figures carefully with a
business advisor before making any decision to purchase the master license. We
do not provide financing to master licensees either directly or indirectly in
connection with their initial investment requirements. The availability and
terms of financing obtained from third parties will depend upon such factors as
the availability of financing, your credit worthiness, collateral which you may
make available, or policies of local lending institution with respect to the
nature of the business.
